Google Explains How Search Ads Rank & Cost
The Inside AdWords Blog posted a video from Google’s Chef Economist, Hal Varian. The video shows how Google prices and ranks search ads in the AdWords system based on quality and bid. This is a really basic overview of the AdWords model, but I personally find the video to be incredibly easy to understand and great for beginners or for SEMs to show clients who are beginners.
Here is the video: